Is Brazil’s Bovespa becoming cheap again, or it’s just a “bull trap”?

According to the “Cyclically Adjusted Price Earnings” metrics, the Brazilian stock market appears cheaper than most others around the world (see table below). Here’s more from Jim O’Neill:

“… according to one of the more cautious valuation techniques I have learnt to follow, so called CAPE (Cyclically Adjusted Price Earnings), the US market is certainly not cheap today, and neither are Australia nor Mexico (see table below). Such a cautious approach does not mean these or any markets will stop rallying but it is a sign to be careful and that these markets could be especially vulnerable to disappointing and surprising news. Many other markets do remain quite cheap, including the other seven of our so-called Growth Markets, as well as Japan and much of continental Europe. This explains why, as I have been suggesting, I would still concentrate my bullishness there.”